# Laura earns a base salary of \$50,000 as an event planner and is subject to the following hypothetical income tax bracket.Laura is considering taking on an additional wedding that will increase her income by \$5,000. In order for Laura to deemthe wedding worth her time, it must earn her \$3,000 after taxes. Please round all answers to two decimal places.IncomeTax rate\$0-\$10,0005%\$10,001-\$30,00010%20%\$30,001-\$50,000\$50,001+50%What is the marginal tax rate associated with taking on this wedding?50What is Laura's average tax rate if the extra wedding is accepted?0.1636

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Asked Dec 13, 2019
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Step 1

1) Marginal tax rate = 50%

Laura was earning a basic salary of \$50,000 as an event planner and when Laura considers taking an additional wedding that will increase his income by \$5000. His new total before tax income will be \$55,000.

Now, Laura is under 50% tax bracket. So, the marginal tax rate associated with taking an additional wedding is 50%.

Step 2

2) The total tax is calcu...

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